The Bank of England (BoE), which is facing the highest inflation of G7 countries, may increase its rates by more than 0.25 basis points, its governor Andrew Bailey said on Tuesday.

“If we see evidence of persistence” of inflation in the long term, “we will act with determination. We would like to clarify that there are other options than a further 0.25 point increase,” Mr. Bailey told the Official Forum of Monetary and said at an event organized by Financial Institutions.

The BoE forecasts that inflation, which has already hit a 40-year high of 9.1%, could rise to more than 11% by the end of the year, but expects it to return to the normal level of its target 2% in two years. But will come back. ,

“It is our job to bring inflation down to 2% permanently, and there is no objection,” Mr Bailey emphasized.

For now, the BoE believes that inflation is mainly due to the Russian invasion of Ukraine and the rise in European gas prices.

Although Mr Bailey clarified that this was not a clue of the BoE’s upcoming monetary policy decisions, his speech suggests that the forces of inflation are taking precedence over growth.

By raising its rates, the BoE could actually weigh on economic activity, which has already started to decline, especially with the decline in retail sales volumes in June.

The BoE was one of the first central banks to raise its rates in December, and its prime rate currently stands at 1.25%.

The central bank, which will announce its monetary policy decision on August 3, expects the peak in inflation to coincide with a rise in regulated energy prices in the United Kingdom at the end of the year.